Explaining the importance of infrastructure assets as a prerequisite for economic development

The pivotal role of an appropriate and efficient economic and social infrastructure has been pointed out by many international observers and is nowadays common ground for politicians, economists and even non-governmental organisations . This means that infrastructure is a necessary prerequisite for economic growth and more efficient use of a country's resources. It has a direct impact on investment, the creation of employment and, as a consequence, the improvement of the living conditions of the affected population leading towards higher tax revenues by the State, and thus on poverty reduction as well. European international contractors are convinced that they have contributed in the past decades, are able today and will continue to make a significant contribution to the United Nation’s objective of reducing poverty around the world by half by the year 2015. However, the future amount for investment in the infrastructure is enormous and cannot be accomplished by public budgets alone. Vast portions of this investment must be made by private investors. Now, it is also very clear that private capital wants an investment that is profitable and safe. So the challenge for the developing world and the emerging countries is to provide investors from abroad a conducive business environment: If they want to attract private investors they must offer attractive conditions.